I have an issue where I require buttons to be semi-opaque until the user hovers over them. The problem is, that when the Alpha opacity is applied to a PNG containing transparent regions, it loses the transparency in semi-transparent parts of the image, like anti-aliased borders etc. Here is an example, just copy the two lines into a file and view using IE 7+. Notice the image with the alpha transparency applied has a nasty black outline.
<img src="http://example.com/ie-png-transparency/test.png"></img>
<img src="http://example.com/ie-png-transparency/test.png" style="filter:Alpha(opacity=100)"></img>
[edited by: engine at 8:16 am (utc) on Jun 9, 2010]
[edit reason] please use example.com [/edit]